NicozDimond, Tristar merger commences

Published: 21 September 2018

The directors of Tristar Insurance Company Limited (Tristar), a short-term insurance unit of First Mutual Holdings Limited (FML), have passed a resolution to seek the approval of the Minister of Finance and Economic Development to transfer its business to NicozDiamond Insurance Limited (NicozDiamond).

FML last month finalised its 100% acquisition of NicozDiamond, Zimbabwe's largest short-term insurer, and now plans to consolidate its short-term insurance portfolio.

The Zimbabwe Stock Exchange-listed company first acquired 80,92% shareholding from the National Social Security Authority last year and making a mandatory offer to its minority shareholders for the remaining 19,08%.

The transaction, completed on August 10, 2018, has given impetus to FML's strategic goal to become a leader in chosen markets.

"Notice is hereby given by the directors of TristarInsurance Company Limited (TristarInsurance) and NicozDiamond Insurance Limited (NicozDiamond) that TristarInsurance and NicozDiamond Insurance Limited intend to make an application to the minister of Finance and Economic Development, in terms of section 33 of the Insurance Act [Chapter 24:07], to sanction the transfer of business from TristarInsurance to NicozDiamond," reads a notice released yesterday and first published in the government gazette on September 14 2018.

"The transfer is subject to all requisite regulatory and corporate approvals being obtained."

FMHL group chief executive officer Douglas Hoto, in a presentation of the company's half year results for the period ending June 30, 2018 just over a week ago, said FML was looking to consolidate Tristar's business with NicozDiamond to strengthen the group's position in the short-term insurance market. - newsday